Senate Committee on Energy chairperson Senator Pia Cayetano expressed worries over the increasing prices of imported liquefied natural gas (LNG), which is now nearing USD 16 per million British thermal unit (MMBTu) which contributes to higher electricity prices.
Cayetano added that indigenous natural gas should be prioritized particularly from the Malampaya gas field.
In a report by Inquirer, Cayetano provided data during a discussion of Senate Bill 2793, the Philippine Natural Gas Industry Development Act showing that Malampaya gas costs only USD 12.8 per MMBtu, compared to the current LNG price of USD 15.3 per MMBtu.
This was in contrast with Senator Sherwin Gatchalian’s earlier claim that LNG costs just USD10.5 per MMBtu.
Cayetano reiterated her appeal for lawmakers to pass Senate Bill 2793 or the Philippine Natural Gas Industry Development Act, a move she said would reduce dependence on foreign fuel and secure the country’s energy future by prioritizing local natural gas resources.
The senator stressed how the global energy market is susceptible to unpredictable disruptions, including squabbles like the Russian invasion of Ukraine, escalating tensions in the Middle East, and climate affecting LNG transport. She argued that relying on local natural gas would provide a more stable and secure energy supply.
Cayetano also stated that the passing of SB 2793 would encourage the discovery and utilization of indigenous gas resources, solving the country’s energy security challenges.
Furthermore, the senator underlined that indigenous gas is the ideal energy alternative because it is easily accessible, owned by the Filipino people, and an important driver of state revenue, with 60% of Malampaya revenues going to the government.
